Legal & General Network launches its RDR proposition.
03 December 2012
Legal & General Network (LGN) launches its Retail Distribution Review (RDR) proposition for its Appointed Representative Wealth Advisers, from 3rd December 2012.
After years of planning and preparation for RDR all wealth advisers will be able to start advising on a new range of products and services where the charge for advice is separate and transparent from any product costs. All advisers will have been fully trained in the new products and point of sale systems to accommodate the requirements of RDR and successfully completed the additional qualifications.
LGN is also delivering ongoing support for advisers including training programmes, webinars and an RDR Support Centre.
What this means for customers:
- A new RDR product range with lower charges
The new range of Legal & General investment products are RDR ready and this will be reflected in lower prices. For example; for Select Portfolio Bond the product charge is 0.5% per annum.
- A transparent and simple way to pay for advice
Customers who buy a Legal & General investment product will not have to pay the advice fee directly to their adviser as we offer Facilitated Adviser Charging (FAC) where the cost of advice can be deducted from the investment the customer makes.
- New ongoing servicing for customers
LGN advisers recognise the importance of building and maintaining good ongoing relationships with customers so that they have access to advice as and when they need it. To support this, they will offer their customers an ongoing servicing option. Part of this service entitles them to receive a no-obligation, twice-annual report, detailing their investment performance and associated recommendations from their adviser.
There is no change to existing purchases that are held post 31 December 2012 where customers do not require any further advice.
Duncan Crocker, Managing Director, Legal & General Network said:
"We are delighted to announce that we are RDR ready, today. Although the deadline for the introduction of the RDR rules is 31 December 2012, we wanted to introduce our approach early to help our customers, who may be concerned about where they should go for affordable advice and products when the rules come into effect.
We believe it is vital to encourage more consumers to save for the future. The success of RDR depends on the delivery of the best outcomes for customers in terms of access to advice and affordable products. Legal & General has a proven track record of providing simple products and our charges are already among the most competitive in the industry. The Legal & General Network is one of the largest Mortgage and Protection Networks in the UK and we also run a full service Wealth AR Network. We are well placed to help and support our partner firms and advisers through this period of change.
Research Legal & General carried out earlier this year told us that 4 out of 5 consumers, regardless of income, prefer to pay for advice through the product they are buying* and so our new products and processes will help ensure this continues."
Notes to editors
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
Legal & General Assurance Society Limited
Registered in England No. 166055
Registered office: One Coleman Street, London EC2R 5AA
We are authorised and regulated by the Financial Services Authority.
The Legal & General Group, established in 1836, is one of the UK's leading financial services companies. As at June 30 2012, we were responsible for investing £388 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
- Source: PwC RDR research among 3,988 consumers conducted March 2012
For more information please contact:
PR Manager, Legal & General Group
t: +44 (0) 20 3124 2092
m: +44 (0) 7764 582574